Workers, taxpayers seek update on Dynegy; no details from team

Saturday

Dec 1, 2012 at 2:00 AM

POUGHKEEPSIE — Striking union workers and worried taxpayers went to U.S. Bankruptcy Court Friday hoping for an update on the status of Dynegy's $24 million in overdue taxes, and the auction process for the Roseton and Danskammer power plants.

Jessica DiNapoli

POUGHKEEPSIE — Striking union workers and worried taxpayers went to U.S. Bankruptcy Court Friday hoping for an update on the status of Dynegy's $24 million in overdue taxes, and the auction process for the Roseton and Danskammer power plants.

They didn't get much new information. Members of the International Brotherhood of Electrical Workers Local 320 were still milling around the front of the court building as most of Dynegy's attorneys left in chauffeured vehicles, likely headed back to their Manhattan offices.

Judge Cecelia Morris ordered the lawyers for all parties in the case to meet in her chambers after hearing a generic update on the sale process and overdue tax issue from Dynegy's team. About 10 minutes later, Morris and the attorneys emerged, but offered no specifics.

"They're balancing all elements," Morris said, adding that the lawyers told her there is interest in the plants.

The plants are outdated and in need of renovation. Together they might be worth in the tens of millions, an analyst has suggested. Danskammer requires about $375 million in environmental updates, according to Dynegy.

Morris approved a settlement Friday between the Houston power company and Central Hudson Gas & Electric. The settlement keeps in place other agreements that set the price of natural gas Dynegy buys from the utility. Those agreements have saved Dynegy more than $1 million this year, according to filings.

Such agreements may be bargaining chips in the auction and negotiation process for the plants. They can be marketed to potential purchasers of Roseton and Danskammer, according to court papers.

Central Hudson, which sold Roseton and Danskammer to Dynegy for $903 million in 2001, also promised not to oppose the shutdown of one or both of the plants.

Many of the Marlboro residents who attended court Friday came together through Facebook groups called Marlboro Community Concerns and Shame on Dynegy. The citizen groups, "liked" by a total of about 400 people on Facebook, want to get other local residents involved in resolving problems in the community created by Dynegy, said Steven Markle, who is involved with one of the groups.

At the next court hearing, scheduled for Dec. 14, a representative of the groups may present a statement, Markle said.

Dynegy's unionized workers have been on strike for nearly a month. Michael Hichak, a Dynegy worker represented by IBEW, said Friday that the workers the company brought in when the union went on strike cannot keep the plants running.

But Roseton ran earlier this week because it made financial sense to do so, according to Dynegy spokeswoman Katy Sullivan. It was the first time since IBEW went on strike that the plant had been called on to run, she said.

IBEW President John Kaiser said the union is concerned about health and safety issues at the plants and in the surrounding area because of reduced staffing during the strike. More than 100 union members are on strike, and Kaiser believes the plants are no longer adequately staffed.

Sullivan, however, said that it's in Dynegy's interest throughout the auction process to keep the plants adequately staffed. Safety is "incredibly important" to Dynegy, she said.

The union had hoped that its contract would be extended through the auction process so that negotiations could resume with a new owner.

The ongoing auction period means that Dynegy's union workers have at least a few more days of standing in the cold along River Road and Route 9W.

"We need an outcome," Kaiser said. "We have an interest in getting our members back to work."